Alternative Investing Report - April 7, 2025

*as of 4/7; Sources: S&P, BTC, FTSE, DJRE, GOLD

Public markets have taken a beating in the aftermath of the new tariff policy, with the stock market having its worst week since the pandemic. Tech stocks and companies reliant on cheap imports are taking the brunt of it. The S&P 500 is down 17% from its recent high in February, while the Nasdaq is down 22% - and now officially in a bear market. As the week started, global markets plunged, and U.S. stock market futures continued to fall, indicating that the bottom has yet to be found.

➨ TAKEAWAY: Alternative assets are not insulated from this downturn. Crypto markets have taken a significant hit, with Bitcoin dropping below $80,000 and Ethereum, Ripple, and Solana all down more than 15% in the past week. The total crypto market cap is down a whopping 8.5% in the past 24 hours. Investors across asset classes have made their thoughts on the tariff policy clear, and unless Trump reverses his position, this bear market could last awhile.

North Myrtle Beach, SC, is the best market to buy a vacation rental, based on the average revenue generated compared to the average sale price. It is followed by Dauphin Island, AL and Okaloosa Island, FL, as the South made up 8 of the top 10 spots and 18 of the 25 overall spots on the list.

➨ TAKEAWAY: The South wins out due to its relative affordability while still having a number of vacation destinations that can generate strong revenues. However, vacation rental revenue has been falling with greater competition, and a potential recession could harm that further. Buyers should focus on high quality individual properties with unique amenities or highly desirable locations so their property can stand out on vacation rental sites.

🚀 Plaid down round: In a round that allows its employees to cash out of expiring stock options, the fintech startup raised $575 million at a $6 billion valuation, less than half of its $13.4 billion valuation from 2021.

🎨 Christie’s Shanghai sale: The auction house’s 20th/21st Century Evening Sale saw 13 of 54 lots go unsold and just $10.8 million of sales compared to the pre-sale low estimate of $13.5 million, highlighting the struggles of the Chinese art market.

❓ Dealmaking uncertainty: With the stock market in freefall, startups are likely to delay IPOs, and with company valuations more difficult to assess, expect M&A market activity to decline.

⚾ World Series ball: The ball from the final out of the Los Angeles Dodgers’ 2024 World Series win sold for $414,000 at an auction benefitting people affected by the L.A. wildfires.

🏢 Multifamily rents flat: There was a slight $5 bump in the average nationwide multifamily rent in March, with a 1.0% year-over-year gain. New York City had the highest annual rent gain, while Austin continued to bring up the rear, posting the highest annual decline.

🏒 Ovechkin breaks NHL goals record: Washington Capitals forward Alexander Ovechkin scored his 895th goal, breaking Wayne Gretzky’s 31 year-old record and inspiring a surge of merchandise and memorabilia.

Today: At 8:50 PM ET, the NCAA Basketball championship game between Florida and Houston.

Tuesday: NFIB Small Business Optimism Index released.

Wednesday: Amazon will launch its first Kuiper satellites with the aim to provide broadband internet from space, directly competing with SpaceX’s Starlink.

Thursday: Consumer price index (CPI) and Core CPI inflation reports released.

Friday: Producer price index (PPI) and Core PPI inflation reports released.

Saturday: The first night of Passover.